Successful Online businesses are more informed
We work with a lot of ecommerce merchants to help increase online sales. Broadly speaking, we focus on improving an online shop’s performance by:
- Getting more potential customers to their website i.e. more visitors
- Getting more sales from the visitors they already have i.e better conversion rate
Focusing on improving sales from existing visitors, we’re going to explore the lucrative opportunities in all your abandoned shopping carts: that is, a potential customer who commits to adding items to their basket but fails to finalise their purchase at some stage of the checkout process.
It’s a widespread scenario for etailers large and small, but how well each react and capitalise on it, might mean the difference between online success and failure.
The trick is, having the online tools to identify these lost sales, reach out to them and measure your results.
It’s a fact of life that shoppers abandon their carts all the time. According to research from the Baymard Institute conducted in March 2014 67.91% of carts get abandoned. It’s part of the buying process and affects even the most popular & well-designed cart experiences.
This can be down to all sorts of competing reasons, not just your customer simply changing their mind.
Research conducted by Worldpay showed that most important factor in shoppers leaving a checkout was when they were presented with unexpected costs, such as high taxes or delivery charges.
Your lost customers may be comparing prices, availability or delivery dates and drop out as your shop fails to meet their expectations.
A percentage will also quite legitimately be prevented from purchasing as they fail security measures, like using fraudulent card details.
The key distinction is to understand which of these two groups your abandoned shopping cart falls into. With the former not only can you take actions to lessen these lost purchases, they can also provide you with an opportunity to try and recapture their business.
You’ll want to target those shoppers lost for any of these reasons:
- An over-complicated or nonsensical checkout process
- Glitches and bugs on a particular device or browser
- Costly delivery charges
- Uncompetitive product pricing
What to do with this information
Once you’ve identified this segment of lost sales traffic it’s time to remedy the situation. The good news is that industry research claim that effectively marketing to those abandoning their sale makes them ten times more likely to convert and finalise their purchase than regular shopping traffic.
For some ecommerce merchants this could mean as much as a 5% increase in annual turnover.
Some site owners can initially be reluctant to approach these uncommitted shop visitors, wary of unduly bothering them.
But in reality, that same market research shows that nearly 90% of online shoppers are open to being approached when they abandon a purchase, with over a third actively welcoming your assistance.
Far from finding it annoying, most frustrated shoppers want this contact. This makes for a huge opportunity for ecommerce merchants to establish a strong customer service mentality (something else surveyed shoppers often find lacking).
Some key points to reinforce why you need to be remarketing to these lost customers:
- 75% of all online sales are abandoned before purchase
- Abandoned sales are 10% more likely to convert
Putting this into practice
Armed with these compelling reasons and backed up with solid data you’re ready to start.
In some cases following up with these potential customers with a well-designed, three-stage e-mail campaign can result in a 20% sales conversion.
To do so requires you to have the correct data and tools.
As a minimum you must be able to:
- Collect the email addresses from the correct segment of abandoned cart traffic
- Tailor and push your marketing message out to this list
- Then measure the outcomes from your campaign to gauge its success.
That’s where Ecce Media come in.
An example campaign can start within half an hour of a shopper leaving their order unfinished, as you automatically send out a gentle reminder that they didn’t complete their purchase. Reassure those shoppers that their potential order was saved and that they can return at any time.
For those that remain unconverted after that stage you can then follow-up with subsequent messages after a day and then finally a week. In all stages of communication make your message no pressure, keeping your call to action clear and simple.
Optionally you can add in incentives, such as discounting or voucher codes. Be warned this doesn’t suit every market, so do your research before you start.
Having the right data and setup opens countless possibilities to you.
We’d love to discuss a solution that incorporates this vital marketing data and many others that Ecce Media specialise in for your ecommerce shop-front. Drop us a line, or simply drop in to see what doors we can open for you and what real-world value we can bring to your business.